Urban Outfitters Inc (URBN)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Cost of revenue (ttm)	US$ in thousands	3,619,396	3,552,486	3,514,717	3,472,657	3,427,354	3,398,074	3,389,613	3,381,835	3,368,025	3,320,678	3,243,058	3,156,682	3,054,813	2,889,219	2,795,199	2,637,967	2,587,843	2,624,319	2,644,020	2,725,246
Inventory	US$ in thousands	621,146	793,324	604,667	578,990	550,242	721,011	586,514	590,326	587,510	743,579	697,474	629,953	569,699	627,103	483,148	477,777	389,618	489,234	351,771	335,640
Inventory turnover		5.83	4.48	5.81	6.00	6.23	4.71	5.78	5.73	5.73	4.47	4.65	5.01	5.36	4.61	5.79	5.52	6.64	5.36	7.52	8.12

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,619,396K ÷ $621,146K
= 5.83

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. For Urban Outfitters Inc, the trend of its inventory turnover over the past few years shows some fluctuations.

From April 30, 2020, to January 31, 2025, the inventory turnover ratio varied between 4.47 and 8.12. The highest turnover was recorded in April 2020 at 8.12, indicating that the company sold and replaced its inventory more than eight times during that fiscal year.

However, there has been a general downward trend in inventory turnover since then, with the ratio decreasing to a low of 4.47 on October 31, 2022. This indicates that Urban Outfitters Inc may be holding onto its inventory for a longer period before selling it.

The inventory turnover ratio improved slightly in the subsequent periods, reaching 5.83 on January 31, 2025. This suggests that the company may have made efforts to streamline its inventory management processes and sell its products more efficiently.

Overall, Urban Outfitters Inc's inventory turnover has shown some fluctuations but has generally remained within a moderate range, indicating a balance between managing inventory levels and generating sales.